No Reversal Yet for the Wells Fargo Candlestick Pattern

 | Feb 06, 2018 | 11:24 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


We wrote about Wells Fargo (WFC) yesterday morning before the opening, saying "If you are long WFC from before or bought a 1/3 position on my suggestion I would continue risking a close below $58. This position will need to be watched closely in case another shoe drops." Let's check and see if the shoe has a red sole or not.

In this daily Japanese candlestick chart of WFC, below, we can see the sharp downside price gap or what the Japanese technicians call a window. The Japanese consider falling windows, or gaps in a down move, as resistance until the window is "closed." Trading volume was extremely heavy Monday with volume topping 100 million shares. Huge.

Looking at slow stochastic indicator in the bottom panel we can see that this decline could be considered "oversold." Prices can get more oversold and can stay oversold. Oversold in a uptrend can be a buying opportunity. Oversold in a downtrend is another thing. Today's trading is not over by any means but right now if the closing bell was rung today's candle is not a reversal pattern.

Columnist Conversations

View Chart »  View in New Window » BA chart I'm STALKING this one for a buy trigger........
View Chart »  View in New Window »   WEEKLY
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...
BABA is still dancing on key weekly support here.  Wait for a trigger! View Chart »  Vi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.